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Consider a Stock That Pays No Dividends Whose Value Equals

Question 1

Multiple Choice

Consider a stock that pays no dividends whose value equals the strike price of a call and put with identical contract terms on the stock.Interest rates are positive.Then,which of the following is true?


A) the call price must equal the put price
B) the call price will be greater than the put price
C) the call price will be less than the put price
D) the call price will be less than or equal to the put price
E) None of these answers are correct.

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